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Buy-to-Let
Joint Equity
Joint Equity compared to Buy-to-Let
Cost of property
£150,000
£150,000
Ownership of each property
100%
50%
Gross asset value
£150,000
£75,000
Deposit
25%
20%
Deposit amount £’s
£37,500
£15,000
Number of properties for £37,500 investment
1
2.5
Total investment
£37,500
£37,500
Gross value of your portfolio
£150,000
£187,500
+25%
Mortgage required
£112,500
£150,000
Mortgage pm  6% interest only
£562
£750
Rent to mortgage ratio (see Note 1)
135%
None
Rent per property
£800
£400
Total rent per month
£800
£1,000
Gross rent per year
£9,600
£12,000
Management fee
15%
5%
Void allowance (see Note 2)
1 month pa
None
Annual cost of void period
£800
£0
Investor repair costs (see Note 3)
£500
£0
Net income/(loss) per year
116
£2,850
+500%
Net income % return on investment pa
0.3%
+6%
Asset growth (see Note 4)
3 years at 6% pa
£178,652
£223,316
+25%
5 years at 6% pa
£200,734
£250,901
+25%

Comparing the financial aspects of Joint Equity & Buy-to-Let


And lower your risks

But remember we deliver it at lower overall risk and with much greater geographical spread - so you can hit the property price growth hotspots.


Get more for your money

If you thought the last table was impressive be prepared to be stunned with what Joint Equity delivers for the same £35,500 investment in Buy-to-Let.


Notes on the comparison

Date of comparison September 2008

We have tried to produce a simple like for like comparison but that means we have had to make some exclusions.

1  We have used 25% for the deposit for Buy-to-Let as it is the most commonly available. We are aware that some lenders only require 20%, however, they add higher arrangement fees and usually have a slightly higher interest rate.

2 We have not included the costs of buildings insurance as it varies substantially with location and type of property and is common to both schemes except with Joint Equity the Investor only pays in proportion to the ownership in this case 50%. Please make your own assessment when considering any specific property.

3  We have not included any contents insurance in the Buy-to-Let column as not all Buy-to-Let owners take it out. No seriously! Please remember with Joint Equity the Investor does not contribute to contents insurance.

Well,then?

We think these 2 tables lead to only one conclusion - Joint Equity is the only way to invest in property to maximise your returns, minimise your costs and risks and really help people at the same time.

How convinced are you?

By now  we are sure that you are convinced that you want to convert your Buy to Let properties to Joint Equity.

We are also sure that by now you are thinking about what to do with your released capital.

Obviously we want you to reinvest it and of course through other Joint Equity schemes as an Investor-Partner details here

The only thing we can not do, yet, is reduce your tax bill form all the extra profits you will be making - but of course we are working on it and have some good ideas

Register as an Investor Partner now and be first to know about our new options.


The Joint Equity Scheme is for first-time buyers, home owners and property investors.  
This site is developed and maintained by Joint Equity ltd. ©Joint Equity (2006, 2007 & 2008)
Joint Equity Ltd works with Mortgage Beaters Ltd to provide case studies & Illustrations to prospective Owner-Partners & Investor-Partners. Joint Equity Ltd does not carry out any regulated activities and so is not regulated by the FSA (Financial Services Authority). Joint Equity Ltd are introducer appointed representatives of Mortgage Beaters Ltd, which is authorised and regulated by the Financial Services Authority.
The content of this website is accurate to the best of our knowledge and  for information only. We do not provide financial advice.